It's about time Interest rates rose again...
- TriumphDriver
- Posts: 182
- Joined: Thu Jan 27, 2011 8:48 pm
It's about time Interest rates rose again...
Just got my statement from Nationwide Building Society. I'd frame it but it would cost more than it's worth. Certainly the interest won't cover the framing!
Apparrently one in six people in the UK have a mortgage, so rates are kept artificially low, despite inflation.
Hang on... doesn't that mean FIVE IN SIX people might benefit from a rise? I might be able to afford a chocolate bar by next year..
Apparrently one in six people in the UK have a mortgage, so rates are kept artificially low, despite inflation.
Hang on... doesn't that mean FIVE IN SIX people might benefit from a rise? I might be able to afford a chocolate bar by next year..
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My posts are for debate and discussion, I'm not The Oracle!
Re: It's about time Interest rates rose again...
We're getting similar returns from our savings, but I'd not want interest rates to rise just yet.
Interest rates are a blunt instrument to control growth in the economy, and if you look at the country's economy as a whole the last thing we need right now is a brake on growth, that would just about finish us off IMO.
The dilemma facing the government is that interest rates are also often used to control inflation, and that is higher than it should be at the moment, which is a worry. It's not higher due to out-of-control wage increases though, it's higher due to high fuel prices amongst other factors, so in this case I don't think an interest rate rise would affect it much anyway.
On a personal level, there may be fewer people that have loans as opposed to savings, but the total value of those loans far outstrips savings, so overall people would be worse off with an interest rise.
Note - before we go any further with this topic, can we keep politics OUT of this forum please. Economics yes if you wish, but no political rants please. Ta!
Interest rates are a blunt instrument to control growth in the economy, and if you look at the country's economy as a whole the last thing we need right now is a brake on growth, that would just about finish us off IMO.
The dilemma facing the government is that interest rates are also often used to control inflation, and that is higher than it should be at the moment, which is a worry. It's not higher due to out-of-control wage increases though, it's higher due to high fuel prices amongst other factors, so in this case I don't think an interest rate rise would affect it much anyway.
On a personal level, there may be fewer people that have loans as opposed to savings, but the total value of those loans far outstrips savings, so overall people would be worse off with an interest rise.
Note - before we go any further with this topic, can we keep politics OUT of this forum please. Economics yes if you wish, but no political rants please. Ta!
Some people are like Slinkies - they serve no useful purpose, but they still bring a smile to your face when you push them downstairs.
Re: It's about time Interest rates rose again...
banks can afford to pay more interest on your savings but don't want to, check out bank lending rates against what you are getting.. credit cards are worse and payday loans are extortionate up to 3500%.
if we want something we save or go without.
when i sold my house 7 years ago i put 130 000 in lloyds for a month & got an extra 19p... when i bought my car 14 years ago i paid 16% interest, i paid the loan off in half the time & the manager asked if i wanted to borrow more it would be no problem. i politely declined his offer...
if we want something we save or go without.
when i sold my house 7 years ago i put 130 000 in lloyds for a month & got an extra 19p... when i bought my car 14 years ago i paid 16% interest, i paid the loan off in half the time & the manager asked if i wanted to borrow more it would be no problem. i politely declined his offer...
- Mrotwoman
- Posts: 646
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Re: It's about time Interest rates rose again...
I have no savings.
Mortgage,overdraft,credit cards and loans though.
So I'm glad rates are low.
Mortgage,overdraft,credit cards and loans though.
So I'm glad rates are low.
Have you forgotten that once we were brought here we were robbed of our names,robbed of our language,we lost our religion,our culture,our God? And many of us by the way we act,we even lost our minds.
Re: It's about time Interest rates rose again...
Makes me laugh when people grumble about interest rates, my boss who has more than a few quid stashed away grumbles about only getting XX% on savings.......well its a fact your getting more than if it were stashed under your bed, so you are in fact getting something for nothing...literally.
Re: It's about time Interest rates rose again...
Interest rates are much the same in Australia.
But I have a morgage offset account where I deposit my savings. That way I effectively get 7% on my savings without having to pay tax on it.
But I have a morgage offset account where I deposit my savings. That way I effectively get 7% on my savings without having to pay tax on it.
Brett Nicholson
1965 Morris Mini Traveller - Trixie
1966 Austin Mini Super-Deluxe - Audrey
1969 Morris Mini Van - Desert Assault Van
1971 Morris Moke - Mopoke
1974 VW Super Beetle - Olive
2009 Nissan Pathfinder
1965 Morris Mini Traveller - Trixie
1966 Austin Mini Super-Deluxe - Audrey
1969 Morris Mini Van - Desert Assault Van
1971 Morris Moke - Mopoke
1974 VW Super Beetle - Olive
2009 Nissan Pathfinder
Re: It's about time Interest rates rose again...
How so? Interest is below inflation, so even the sub-1% on a typical easy access account comes close to keeping up with your outgoings. Still, I'd bet that's one comfy mattress though but.jimmyybob wrote:Makes me laugh when people grumble about interest rates...//...you are in fact getting something for nothing...literally.
J
"Home is where you park it", so the saying goes. That may yet come true..
"Home is where you park it", so the saying goes. That may yet come true..
- Martin Evans
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Re: It's about time Interest rates rose again...
I hope we don't see a return to the situation where savings are wiped out by inflation. On of the ways banks make a profit, is the margin between deposits and loans; let's hope the banksters aren't too greedy Having said that, I hope to win the Lottery
Rules exist for the obedience of fools and the guidance of wise men.
MG Midget 1500, MGB GT V8, Morris Minor Traveller 1275, MG Midget 1275 & too many bicycles.
MG Midget 1500, MGB GT V8, Morris Minor Traveller 1275, MG Midget 1275 & too many bicycles.
Re: It's about time Interest rates rose again...
Eh? I'd like to see an investment interest rate that's higher than inflation right now - tell me, I'll put all my money there!Martin Evans wrote:I hope we don't see a return to the situation where savings are wiped out by inflation.
Some people are like Slinkies - they serve no useful purpose, but they still bring a smile to your face when you push them downstairs.
- Martin Evans
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Re: It's about time Interest rates rose again...
Ideally yes, wouldn't we all but higher returns usually carry higher risks. With rates being as low as they are, savings are being devalued, even where the funds have not been put into speculative investments.
Rules exist for the obedience of fools and the guidance of wise men.
MG Midget 1500, MGB GT V8, Morris Minor Traveller 1275, MG Midget 1275 & too many bicycles.
MG Midget 1500, MGB GT V8, Morris Minor Traveller 1275, MG Midget 1275 & too many bicycles.
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